AN ORDINANCE AMENDING SECTIONS 2-16 AND 31-6 OF THE DULUTH CITY CODE, 1959, AS
AMENDED, PERTAINING TO FEES AND CHARGES.

BY COUNCILOR STEWART:

The city of Duluth does ordain:

Section 1.That Section 2-16 of the Duluth City Code, 1959, as amended,
be amended to read as follows:

Sec. 2-16.Special or nonroutine services by city departments;
fees.

(a)Any city department that furnishes special or
nonroutine services to any person or organization, other than
services which it is required by law to perform without fee, may
charge the person or organization requesting such services a fee
as set by council resolution for that type of service, but not to
exceed the cost of performing such services. No fee shall be
charged unless the amount, regardless of how it is calculated or
determined, is authorized by council resolution;

(b)Each year, on or before November 1, the clerk shall
prepare and present to the council a resolution setting out
recommended changes in the amount to be charged for the various
city fees. Changed fees shall be calculated by changing the
existing fee in the same proportion as the proportional change in
the implicit price deflator for gross domestic product, government
consumption expenditures and gross investment, state and local,
during the 12 months prior to August 1 of the previous year. The
implicit price deflators for gross domestic product, government
expenditures, state and local, is produced and published by the
U.S. department of commerce, bureau of economic analysis, or its
successor. The following are excepted from the application of the
implicit price deflator:

(1)A rate increase that would amount to less than
$1;

(2)Fees that are tied to another index, such as
uniform building codes, a state index or federal law;

(3)Fees for events, attractions, or recreation
opportunities (for example, golf rates are adjusted annually based
on business goals, rates of surrounding courses or other factors.
Additionally, these rates are reviewed and approved by boards and
commissions before they go to the city council);

(4)Fees and charges associated with the public
utilities;

(5)Any other fee that the council elects to
determine by a different method.

The fee amount for the excepted fees shall be determined by
the council by resolution.

Section 2.That Section 31-6 of the Duluth City Code, 1959, as amended,
be amended to read as follows:

Sec. 31-6.Fees for issuance of license.

(a)The fees for all licenses and permits issued pursuant
to this Code shall be set by city council resolution and shall be
based on the city’s cost of regulating the activity for which the
license or permit is issued. At least biannually, the city
council or appropriate committee of the city council shall conduct
a hearing to consider the adjustment of all license fees to
reflect changes in administrative and enforcement costs in
accordance with appropriate economic indicators as determined by
the city council or committee. Each year, on or before November
1, the clerk shall prepare and present to the council a resolution
setting out recommended changes in the amount to be charged for
the fees. Changed fees shall be calculated by changing the
existing fee in the same proportion as the proportional change in
the implicit price deflator for gross domestic product, government
consumption expenditures and gross investment, state and local,
during the 12 months prior to August 1 of the previous year. The
implicit price deflators for gross domestic product, government
expenditures, state and local, is produced and published by the
U.S. department of commerce, bureau of economic analysis, or its
successor. The following are excepted from the application of the
implicit price deflator:

(1)A rate increase that would amount to less than
$1;

(2)Fees that are tied to another index, such as
uniform building codes, a state index or federal law;

(3)Fees for events, attractions, or recreation
opportunities (for example, golf rates are adjusted annually based
on business goals, rates of surrounding courses or other factors.
Additionally, these rates are reviewed and approved by boards and
commissions before they go to the city council);

(4)Fees and charges associated with the public
utilities;

(5)Any other fee that the council elects to
determine by a different method.

The fee amount for the excepted fees shall be determined by
the council by resolution.

The city clerk shall maintain copies of a schedule of
current city license fees for distribution to the general public
and shall, if feasible, maintain a schedule of city license fees
on the internet for public inspection;

(b)If the license is not issued for any reason, the clerk
shall refund license fees collected except the police
investigation fee authorized in Subsection (c) below;

(c)The police department shall charge a fee, which shall
be set in accordance with Section 31-6(a) of this Code, for
performing a background investigation of any applicant for a
license authorized by this Code or a state statute, except where
such a fee is prohibited by law. The fee may be collected by
either the police department or the city clerk.

Section 3.That this ordinance shall take effect 30 days after its
passage and publication.

STATEMENT OF PURPOSE: This ordinance sets up a regular annual process for
reviewing fees charged by the city and specifies a method to calculate the
amount of changes in some fees. The council retains authority to set the
amount of any fee.